This project complements the previous one on Financing Higher Education in the sense that it is an attempt to explore another possible explanation for the poor performance of higher education in the region: namely the institutional structure governing the operation of universities. In practice, this means focusing on whether the incentive structure facing the provider of higher education is compatible with desired outcomes or not. The analysis will cover three countries: Egypt, Jordan and Turkey. Turkey will serve as a benchmark, given that it is one of the countries in the region where progress has been made, whereas Egypt and Jordan provide sufficient variations within the Arab countries. Within each of the three countries, the analysis will be carried out over three areas: the national level, the level of universities – one private and one public, and at a university departmental level – namely the Economics Departments.